Having been certified for hearing
by the Third District Committee, Section I, and the respondent, Charles Robert
Gray, having requested a hearing before a three-judge panel pursuant to Va.
Code ß 54.1-3935, this matter came on for hearing on June 13 and 14, 2002, before
a three judge panel consisting of the Honorable James C. Godwin, J. Peyton Farmer
and James A. Luke, Chief Judge.

The Respondent appeared in person
and was represented by his attorney, Michael L. Rigsby. Assistant Bar Counsel
Charlotte P. Hodges represented the Virginia State Bar.

After the Virginia State Bar presented
its evidence, the bar withdrew charges that the Respondent had violated DRs
1-102(A)(1) and (3); 2-108(A)(1); 3-104(A)(1) and (3); 3 104(D); 6-101(A)(1)
and (2); 6-101(B); 7-102(A)(1), (2) and (3); and RPC 8.1. The Respondent's counsel
moved to strike the remainder of the bar's case.

Having considered the pleadings,
evidence presented by the bar and arguments of counsel on Respondent's motion
to strike, the Court found that the bar had failed to present prima facie evidence
that the respondent had violated DRs 1-102(4); 2-105(A); and 9-102(A) and (B),
but found that the bar had proved by clear and convincing evidence that the
Respondent had violated DRs 6-101(C) and (D); and 9-103(A)(2) and (3), which
state as follows:

DR 6-101. Competence
and Promptness.

* * *

(C) A lawyer shall keep a client
reasonably informed about matters in which the lawyer's services are being rendered.

(D) A lawyer shall inform his client
of facts pertinent to the matter and of communications from another party that
may significantly affect settlement or resolution of the matter.

DR 9-103. Record
Keeping Requirements.

(A) Required Books and Records:
As a minimum requirement, every attorney engaged in the private practice of
law in Virginia, hereinafter called "attorney," shall maintain or cause to be
maintained, on a current basis, books and records which establish his compliance
with Disciplinary Rule 9-102. These records including all the reconciliations
and supporting records required under Section (B) hereof shall be preserved
for at least five years following completion of the fiduciary obligation and
accounting period. For this purpose, the following books and records, or their
equivalent, are required.

* * *

(2) A cash disbursements journal
listing and identifying all disbursements from the fiduciary account. Checkbook
entries of disbursements, if adequately detailed and bound, may constitute a
journal for this purpose. If separate disbursements journals are not maintained
for fiduciary and nonfiduciary disbursements then the consolidated disbursements
journal shall contain separate columns for fiduciary and nonfiduciary disbursements.

(3) Subsidiary ledger: A subsidiary
ledger containing a separate account for each client and for every other person
or entity from whom money has been received in trust shall be maintained. The
ledger account shall by separate columns or otherwise clearly identify fiduciary
funds disbursed, and fiduciary funds balance on hand. The ledger account for
a client or a separate subsidiary ledger account for a client shall clearly
indicate all fees paid from trust accounts.

* * *

The Virginia State Bar objected
to the Court's finding that the bar had failed to present prima facie evidence
that the Respondent violated DR 1-102(A)(4).

Upon consideration of the misconduct
that the Court found the bar had proved by clear and convincing evidence, the
Court ruled that a dismissal with terms shall be imposed upon the Respondent
for violating DRs 6-101(C) and (D); and 9-103(A)(2) and (3).

According, it is ORDERED
that a Dismissal with the following Terms shall be imposed upon the Respondent:

1. The Respondent shall return the
files requested by Clifford Amos;

2. For five years from entry of
this Order, the Respondent shall not reenter the private practice of law as
a sole practitioner;

3. For five years from entry of
this Order, the Respondent shall submit an affidavit to Bar Counsel affirming
that he is not engaged in the private practice of law as a sole practitioner;
and

4. For five years from entry of
this Order, the Respondent shall obey all the rules of the Virginia State Bar.

If the Respondent fails to comply
with any of the foregoing terms, bar counsel will initiate a show cause proceeding
requiring the Respondent to show cause why his license to practice law in the
Commonwealth of Virginia should not be suspended for six months. The imposition
of the alternative sanction shall not require any hearing on the underlying
charges of misconduct, if the Virginia State Bar discovers that the

Respondent has failed to comply with
any of the agreed terms. In that event, the Virginia State Bar shall issue and
serve upon the Respondent a Notice of Hearing to Show Cause why the alternative
sanction should not be imposed. The sole factual issue will be whether the Respondent
has violated one or more of the terms of the Dismissal with Terms without legal
justification or excuse. The imposition of the alternative sanction shall be
in addition to any other sanction imposed for misconduct during the probationary
period.

Pursuant to the Part Six, §IV,
¶13.K.(10) of the Rules of the Supreme Court of Virginia, the Clerk of
the Disciplinary System shall assess costs.

It is ORDERED that
the Clerk of the Circuit Court shall send an attested copy of this Order by
first class mail to counsel of record and to the Clerk of the Disciplinary System,
Virginia State Bar, Suite 1500, 707 East Main Street, Richmond, VA 23219, and
place this matter among the Court's ended cases.

It is further ORDERED that
the Clerk of the Disciplinary System shall mail a copy of this Order by certified
mail, return receipt requested, to the respondent at his last address of record
with the Virginia State Bar, P.O. Drawer B, Chester Virginia 2383.